Mental Health and Money are closely linked. When you have debt the impact on your mental state is huge. I have been there. The feeling of that weight constantly on your shoulders is desperate, crippling. At points of turmoil, when I realised I had 16k of debt I thought about it constantly. How would I even start to pay it off, how long would it take, what would I have to sacrifice to pay it off. At points I couldnt see any glimmer of light at the end of the tunnel.
I did a big thing to help with my mental health which was building an emergency savings pot at the same time as paying off my debt. I started small and was paying off £2-300 of my debt each month, and also adding the same amount to my emergency fund.
If I ever got any extra money I would add more into my debt repayment and more into my savings. There were even a few months where I paid off £1k of my debt and added £1k to my savings. Its didnt take too long to build up a savings pot of £3k. This was my mental safety net. I knew that if anything happened, car repairs, dead washing machine I had a pot to dip into to pay for these emergencies.
It is uber important to have some safety savings set aside to protect your mental health as well as cover emergencies that inevitably happen in three’s. Here are some more reasons why it’s good for your mind.
Anxiety about money
Sometimes you may have trouble saving money, and if that’s the case you need to look at yourself. If you are suffering from depression, anxiety, have bad spending habits, or just need advice, a therapist can make it easier for you. Sites such as Regain can make it easier for you to get the help you need, when you need it. Because it’s online and many therapists work from home, the costs can be much less, too.
It’s Good for Eliminating Debt
Many people want to be debt free, whether that means eliminating student loans or credit card debt. However, not enough people make an effort to do so. Through some careful planning and saving up money, you can eliminate debt with a plan. Talk to a professional today such as CAP or Step Change and see what they can do for you. Chances are, you can improve your debt quite a bit and feel much more at ease, which is always good for your mental health.
It Keeps You at Peace of Mind
Having some money in the bank helps you feel peaceful whenever there may be an expense that you may have to deal with. Expenses are never a fun thing, but we often have to deal with them. Luckily, having money in the bank can soften the blow should an unexpected expense coming up.
It’s a Fun Skill to Learn
Saving money can be a fun little hobby to learn. What do we mean by this? Well, it can be a fun challenge. Tracking your expenses and learning about ones you can eliminate, or replace with something cheaper, is always a fun little task that you can do. Learn unique ways to save money, and you’ll benefit from it in quite a few ways.
It’s A Valuable Skill to Pass on to Your Children
Too many adults don’t teach their kids how to save money and be good with it. When the child grows up, we are then surprised at how much they can’t save. There are many ways you can deal with this problem, and one way is to buy them tools they can use to save. Like a toy cash register, or a piggy bank. For other ways they can do this, click here or look here for some more info on how you can help your kid learn these valuable life skills.
It’s Hard to Save Money, Though
Of course, this is easier for some than others. Some people are literally living payday to payday, and don’t know how to save money when their bills eat it up. However, even if you are poor, there are still ways to save money. Here are a few ways you can go about it:
- Take a look at all your expenses, your income, and make an honest budget of what you need to spend. Eliminate any unneeded expenses, or look for cheap alternatives.
- Make sure your bills are set to auto pay so you never miss one.
- Be mindful of your bank account and see where all the money is going.
- Try side hustles and other jobs to help expand your income a little more.
There are many other ways you can break free of the cycle of paycheck to paycheck, but that is for another article. Hopefully, you now understand why saving money is so good for the mind.
Thank you to Betterhelp for their contribution to this helpful article.